BILLABONG TAKEOVER BID OFFICIAL

While speculation regarding the takeover bid recently caused frenzy, negotiations were halted by the company’s decision to sell-off a portion of its top-performing US watch brand Nixon to pay down debt.

However, the Billabong board confirmed the deal was still on the table.

“The Board of Directors of Billabong announces that before market opening today, it received a non-binding, indicative proposal from TPG Capital to acquire all of the shares in the company for $3 cash per share by way of a scheme of arrangement,” it said in a statement.

“The proposal is subject to due diligence, subject to finance and conditional on a number of other matters, but it does not preclude the Nixon transaction.

“The Board of Billabong will consider the proposal and advise shareholders of its views in due course. In the meantime, Billabong shareholders do not need to take any action in response to the proposal.”

Billabong has appointed Goldman Sachs as financial advisors and Allens Arthur Robinson as legal advisors.

It comes after the Gold Coast’s largest ASX-listed company announced it would close up to 150 stores and shed hundreds of jobs in a capital restructure plan following a 70 per cent free-fall in half year profit.

Billabong shares jumped 30 cents to $2.92, valuing the company at close to $740 million. Executives believe the stock, which took a pummelling before December, is under-valued. It was worth around $4 before the December downgrade and $8.55 this time last year.